The US Treasury this morning auctioned $35 billion in two-year notes at a yield of 0.24%, in-line with expectations. The bid-to-cover ratio was 3.45, slightly higher than the 3.38 average of the 10 most recent auctions.
An interest-rate strategist at Credit Suisse told Bloomberg News:
“The auction continues the generally strong demand for Treasuries we’ve been seeing,” said Scott Sherman, an interest- rate strategist in New York at Credit Suisse Group AG, which as a primary dealer is obliged to bid in U.S. debt sales. “It’s not as high as we’ve seen of late, but the demand was pretty healthy as judged by the bid-to-cover. There is still uneasiness, and thus people are taking risk off the table.”
Interestingly, the S&P downgrade of US debt has not changed the desirability of that debt when the global economy takes a turn for the worse, as it did today with the death of Kim Jong Il and the downbeat comments from the president of the European Central Bank.
Contact [email protected] for any questions or corrections.
Top Gaining Stocks
Top Losing Stocks